The Red Deer real estate market keeps powering through with higher-than-expected sales, and prices, and we’re still in a seller’s market!
Blake King – broker/owner, Big Earth Realty
Inventory levels have crept up a little but remain low in Red Deer. Inventory is low sales are higher than expected and fewer homes are being listed. But even with inventory increasing a little, prices also increased in October 2023.
Inventory
The number of homes for sale (inventory) in Red Deer was higher in October than in September.
More homeowners might decide to list their homes as their mortgages mature and sales will slow as we end the year. It might already be happening but we will see inventory increase as homeowners are forced to adapt to the higher rates.
The number of homes for sale in Red Deer will also go up as interest rates become the new normal.
Average price
The average sale price of homes in Red Deer has changed this year but not in the typical way.
The overall home price average looks as though prices are decreasing but they aren’t. More buyers are buying less expensive housing and that affects the overall price average. However, in almost every price range prices are increasing.
However because fewer detached homes are selling and more homes are selling in the lower price range, the overall average is lower.
For example, if normally 100 detached homes sell each month at an average price of $400,000, and 40 detached homes sell at an average price of $220,000, the overall average price that month would be $348,571. But if only 70 detached homes but higher at $410,000, and 70 attached homes sell higher at $230,000 in a month, the overall average price would be only $320,000. The average price in each segment has increased but with fewer homes selling in the higher-priced segment the overall price average is lower.
The 6-month running price average for detached homes sold in Red Deer went up 0.8% in October,
For more price average details read our monthly average price report.
Home sales
Red Deer home sales overall were down 3% this October over October 2022.
2023 overall home sales will close the year substantially higher than sales in 2019 and 2020.
Homes sales overall in Red Deer are only 9.4% lower than they were this time last year, due in most part to higher interest rates. With very low inventory levels it’s easy to imagine that more homes could sell each month if there were more available for sale.
Days on market
The increase in inventory rates might be the cause of longer days on the market (D.O.M.) numbers.
Summary
Almost all of the information above points toward it being a good time to sell your home if you can and need to. I also think it’s a good time to buy if you’re considering that.
Alberta is seeing more immigration and interprovincial migration because there’s attractive employment here and the cost of living is relatively low. Inventory levels are expected to stay low and that will push prices up.
Check in each month at www.iOnRealEstate.ca for Red Deer and Central Alberta real estate news, stats, and information.
Download a copy of the Red Deer real estate infographic – https://www.ionrealestate.ca/wp-content/uploads/2023/10/Oct-Infographic.pdf
